As a commitment to implementing environmental, social, and governance (ESG) aspects, PT Chandra Asri Petrochemical Tbk (Chandra Asri) continues its circular economy program, Asphalt Plastic Road for Indonesia Asri, which is targeted to reach 100 km by 2023. As of December 2021, the Company has implemented 50.8 km of plastic road across various locations in Indonesia in collaboration with its partner. The plastic road uses a total of 37.5 million pieces of plastic waste; or equal to 282 tons of waste that has been successfully managed from the landfill (TPA).
Asphalt Plastics Road for Indonesia Asri is one of Chandra Asri’s ESG implementation through circular economy program to contribute to a cleaner environment. This program was made possible through a solid collaboration and participation of various stakeholders in dealing with waste problem, especially plastic waste. Initiating positive partnerships for Asphalt Plastic Road is one of our participation as a market leader in implementing circular economy.
The Garut Regency Government has signed a Cooperation Agreement with Chandra Asri and Bakti Barito Foundation (Bakti Barito) to support the implementation of 50 km plastic asphalt in Garut, spread on various roads within the regency. The implementation of the first phase of this project will cover 23 km of asphalt road and manage 28.8 million pieces of plastic shopping bag waste. The plastic waste used in this project will be provided by Chandra Asri in collaboration with the Indonesian Plastic Recycling Association (ADUPI).
This plastic asphalt cooperation in Garut will be implemented throughout 2022 up to 2023. It is estimated that up to 216.6 tons of waste from Garut's Final Disposal Site (TPA) will be managed from this project. The plastic asphalt program has previously been implemented in Jabodetabek, Cilegon, Tegal, and Kudus, as a result of collaboration between the local governments and the private sector.
Chandra Asri and Sinar Mas Land extended the plastic waste management initiative through the "Plastic to Food" activity in the BSD City area. Through this program, the two companies educate and invite the public to manage plastic waste in their surrounding environment. Plastic waste collected by residents can be exchanged for rice as an initial stimulation. The collected plastic waste is then taken to the Integrated Waste Management Industry - Overcome Waste, Manage Independently (IPST ASARI); a waste processing facility fostered by Chandra Asri.
At IPST ASARI, the collected waste is divided into two categories; high value and low value plastic waste. High-value plastic waste is channeled to the recycling industry to be processed into plastic pellets that can be remanufactured into goods with high durability. Meanwhile, low-value plastic waste is further processed into fuel oil with quality equivalent to diesel, gasoline, and kerosene that can be utilized by the community.
On 2 November 2021, PT Chandra Asri Petrochemical Tbk inaugurates integrated waste management by building community capacity through the Integrated Waste Management Industry-Managing Waste Independently (Industri Pengelolaan Sampah Terpadu-Atasi Sampah, Kelola Mandiri or IPST ASARI) in Cilegon, Banten. This initiative is one of Chandra Asri’s efforts to support the Indonesian Government’s effort in reducing the accumulation of waste in landfills and waste that end up in the oceans by 70% in 2025 through the circular economy approach. The Mayor of Cilegon, Helldy Agustian, together with related stakeholders also attended the inauguration of IPST ASARI as well as appreciated the program carried out by Chandra Asri.
IPST ASARI's operations can help to overcome waste accumulation by collecting plastic waste from the surrounding environment such as households, schools, commercial areas, large industries as well as small and medium industries, and fishermen. The waste is managed at IPST ASARI will be sold to the recycling industry and also processed into another resource, namely BBM Plas.
The operation of IPST ASARI is managed by the surrounding community who are members of KSM Sehati Maju Bersama. They were provided with special training to operate plastic waste management at IPST ASARI. By strengthening community capacity, it is expected that the benefits of waste management can be obtained sustainably.
Committed to realizing the principle of a circular economy, PT Chandra Asri Petrochemical Tbk together with Sinar Mas Land held plastic asphalt in the West area of BSD City on 24 August 2021. Plastic asphalt with a total paving area of 15,518 m2 has utilized 5.37 tons of plastic waste or equivalent to 3 .58 million pieces of plastic bags as a mixture of asphalt.
Asphalt model with a mixed of plastic waste is a program of the Government of Indonesia through the Ministry of Public Works and Public Housing (PUPR). The type of plastic waste used is plastic waste commonly used as daily shopping bags from HDPE (High Density Polyethylene) type. This asphalt with a mixture of plastic waste has referred to a study conducted by the Ministry of Public Works and Public Housing and has an increase in road durability of up to 40 percent.
Sinar Mas Land and Chandra Asri also collaborated with the Indonesian Plastic Recycling Association (ADUPI) in providing recycled plastic waste materials used in this program. The model used contains plastic (chopped plastic bags/HDPE) to produce an asphalt mixture that is resistant to deformation (changes in shape due to temperature) and is better at fatigue resistance.
On 22 April 2021, PT Chandra Asri Petrochemical Tbk won three awards at the Top CSR Awards 2021 organized by Top Business. Chandra Asri receives an award in the category “Top CSR Awards 2021 ‘4-Stars’”, “Top Leader on CSR Commitment 2021” attained by President Director Chandra Asri Erwin Ciputra and Innovation of Plastic Waste Technology.
Under the theme of "The Strategic Role of CSR in National Economic Recovery in the New Normal Era", there are three main criteria for assessment in the Top CSR Awards. First, the level of corporate CSR adoption of ISO 26000 Social Responsibility. Second, the alignment of the CSR program with the company's business strategy. The last is the principles of GCG that underlie the implementation of the company's CSR programs. By achieving these awards, Chandra Asri is considered successful in running an effective, quality and sustainable CSR program.
As a commitment to implementing the circular economy principle, on 8 April 2021, PT Chandra Asri Petrochemical Tbk collaborated with PT Djarum in deploying asphalt with a mixture of plastic waste in the Djarum factory area in Kudus, Central Java. This plastic asphalt project is the Government of Indonesia’s program through the Ministry of Public Works and Housing which has been promoted in recent years.
The total paving area is 39,000 m2 and utilizes a mixture of 7.1 million pieces of plastic waste. The plastic waste used is plastic shopping bags made from HDPE (High Density Polyethylene), a type commonly used for plastic shopping bags. Djarum and Chandra Asri were also working with the Indonesian Plastic Recycling Association (ADUPI) for the supply of plastic waste used in this project.
To support Jakarta Recycle Center (JRC) program to reduce the high pile of organic waste, PT Chandra Asri Petrochemical Tbk handed over several supporting equipment to improve the effectiveness of organic waste management which are 1 unit of shredder machine with a capacity of 300 kg/hour, 2 units of 660 L volume dust bin and 4 units tray. The donation is held on 4 March 2021.
This contribution indirectly took part in preventing the addition of organic waste piles at the TPA Bantargebang. By 2020, JRC managed to prevent an additional 126,830 kg of new organic waste and an emission reduction of 74,278 kg of CO2e. Currently, the national waste pile has reached 67.8 million tons in 2020.
On 15 October 2020, PT Chandra Asri Petrochemical Tbk signed a collaboration with DKI Jakarta Environmental Agency for Jakarta Recycle Center (JRC) program. The virtual signing of this collaboration includes the provision of 36,000 pieces of 100% recycled plastic garbage bags to support the waste sorting program belonging to DKI Jakarta Environmental Agency.
The design of this segregated waste plastic bag adopts a design from the City of Osaki, Japan, by adjustments from the DKI Jakarta Environmental Agency, research results from students of Tokyo Institute of Technology, and technical assistance from Indonesian Plastic Recycler (IPR). The provision of plastic garbage bags that can be reused and recycled is a form of Chandra Asri's efforts as a producer who is responsible for building good habits in the community. This recycled trash bag is expected to help DKI Jakarta reduce the amount of waste in Bantargebang landfill.
Committed to implementing a circular economy, on 28 August 2020, PT Chandra Asri Petrochemical Tbk, in collaboration with the University of Indonesia (UI), implemented plastic asphalt on 241m2 of roads at the UI. This activity is a form of Chandra Asri's contribution to the problem of low-value waste in Indonesia. This plastic asphalt used 75kg of Polypropylene in the form of instant noodle packs from the industry as an asphalt mixture.
The collaboration between UI and Chandra Asri has been going on since 2018 in the development and lab tests. In 2020, a field test of the application of plastic asphalt will be carried out which can improve the quality of road stability by up to 40% under the results of tests conducted by the research team from UI, Chandra Asri, and also involving the Wasco Construction Company. As a result, the road quality will be stronger, more durable, and potentially saving the maintenance costs.